Systemax restates its 2004 results but web sales still totaled $515 million

Though Systemax Inc. recently restated its 2004 quarterly and full year financial results because of errors in accounting for inventory at TigerDirect, the company’s final e-commerce numbers remain the same, says senior vice president and CFO Steven Goldschein.

For 2004, Systemax reported e-commerce sales of $515 million, an increase of 34% from web sales of $384 million in 2003. The web in 2004 accounted for 27% of total sales of $1.9 billion vs. 24% of total sales of $1.6 billion in 2003.

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“The increase in our Internet sales enables us to leverage our advertising spending, allowing us to reduce our printed catalog costs while maintaining customer contact,” the company says in its latest annual report.

The recounting for TigerDirect, which generates about 50% of its annual revenue from business-to-consumer sales and is No. 32 in the Internet Retailer Top 400 Guide to Retail Web Sites, also pushed back the release of the company’s current fiscal 2005 reports. Quarterly earnings for Systemax’s current fiscal quarters, including e-commerce sales, will be available in a few weeks, says Goldschein.

Systemax is a direct marketer of brand name and private label products, including personal computers, notebook computers, computer-related products and industrial products in North America and Europe.